Investigating the economic and environmental effects of a carbon tax in a quantitative macroeconomic framework
Résumé
This article performs a systematic analysis in order to identify the key mechanisms leading to a double (environmental and economic) dividend in a quantitative macroeconomic framework. We simulate the impact of implementing a carbon tax in the case of a small open economy by using the ThreeME model calibrated for France. We find that the two main assumptions leading to a DD are the low exposure to foreign competition (which corresponds also to the case where countries cooperate in an international agreement) and the flexibility of the economy (in terms of substitution possibilities). In comparison, the impacts of the redistribution mechanisms of the carbon tax and of the inflation dynamic are small.
Domaines
Sciences de l'environnement| Origine | Fichiers produits par l'(les) auteur(s) |
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